Yahoo Buys Site for Nebraska Data Center

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Yahoo has purchased this building in La Vista, Nebraska for $14.8 million.

Yahoo has purchased this building in La Vista, Nebraska for $14.8 million.

Yahoo continues to move forward with plans for a major data center project in Nebraska, even as the company appears to be preparing for cost-cutting that could include employee layoffs. Yahoo paid $14.8 million to purchase a warehouse and headquarters building for Tender Heart Treasures in La Vista, Nebraska, according to property records.  

The property includes a 300,000 square foot existing structure on 24.3 acres of land, with approval to add a 38,000 square foot expansion. The building includes a three-story office area and a warehouse with a 35-foot ceiling. Tender Heart Treasures, which makes gifts and home decor products, will vacate the building in January when it moves to another location, according to the Omaha World-Herald.

In August Yahoo applied for tax incentivesunder the Nebraska Super Advantage program, which requires a minimum investment of $100 million and the creation of at least 50 high-salary jobs paying a minimum average salary of $68,700. The filing revealed that the project would be in La Vista, a fast-growing Omaha suburb whose corporate residents include HP and eBay’s Paypal unit, which employs about 2,000 workers at a call center not far from the new Yahoo site.

Omaha was recently named one of the most affordable U.S. cities to operate a data center by The Boyd Company, with an annual operating expense of $12.9 million, less than half the cost of operating a similar facility in New York.

Yahoo has been accelerating its data center build-out in recent months, leasing data center space in Santa Clara from Digital Realty Trust (DLR) and speeding deployment of its footprint in a facility in Ashburn, Va. operated by Dupont Fabros (DFT).

But the company is reining in spending in other areas. Yahoo disclosed yesterday that it has hired consulting firm Bain & Co. to help review its expenses and find ways to boost efficiency. The review is widely expected to result in employee layoffs at Yahoo.

About the Author

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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